stankey and zaslav were asked that question and said this deal is possible now because at&t owned time warner turned it into warner media, built the streaming business and now this is all panel. certainly seems like repudiation of former at&t ceo randall stephenson's strategy for so many years building up a much larger media company with all those different assets. >> huh julia, tell us about the players here, which you know so well biggest surprise of the morning so far has been ron conway singing the praises of david zaslav, who a lot of people think of as, yes, a very competent but traditional media executive and ron conway is the start-up guy so how is it that david zaslav ended up in control of this, even though discovery is the smaller player >> well, that's a good question, jon, but i actually don't think that's surprising. david zaslav, yes, been ceo of what is a smaller of these media companies compared to some of the giants, but what he's done over the years is he's done very meaningful acquisitions with the scripps deal with deals like euro sport built up a company and a very inter

deal -- time warner deal. hts on warner, discovery striking as an obvious candidate to settle -- set off any alarm bells among the democrats the way, the sprint, t-mobile and comcast, time warner deal did. >> we talk about jeff bezos and bill gates and warren buffet and the smart business titans. the one that doesn't get enough discussion is john malone, easily the smartest media man, he's built many empires in the media world. he's on the board of discovery. i imagine anything that he's involved in, they they have several contingency plans to figure out whichever way the doj warrants to go, they have a well thought-out plan. he has a phd in organizational management. i say the deal will get done. there may be concessionses and spinoffs. i would imagine that anything that john malone has his name on has a high likelihood of getting passed. maria: katherine, we're putting it on the screen, at&t would receive $43 billion from the merger, discovery shareholders would own 29% of the new company. your thoughts? >> y

if you consider that big ben 18 tee ball paid about 85 bill hit talk or send i mean i followed time warner for quite some time even looking back to the year 2000 remember when a.o.l. was the hot company in town and bought time warner for $160000000000.00 and that they actually didn't really play that well and then in 2080 and that's when a t. and t. a bought at time warner well big then it took years for the deal to get approved and by then cutting was already on volk in the united states and then also combining content to gether with the wires from a t.n.t. obviously didn't really quite pay out and if you look what happened to the stock price from h e n t since 2018 when they bought time warner actually the stock didn't really move that much by the competitors like verizon or t. mobile us for example those stocks have gained quite a bit so definitely that that was not the best marriage that we had to in the past years between 80 and t. and water media all right it's a rapidly shifting media landscape in new york thank you. well there are dangerous jobs and then there are dangers at jobs i

ball paid about 85000000000 chalker said i mean i followed time warner for quite some time even looking back to the year 2000 remember when a.o.l. was the hot company in town and bought time warner for a good $160000000000.00 and that they actually didn't really play out that well and then in 28 t. and that's when a t. and t. of bought at time warner well big then it took years for the deal to get approved and by then court cutting was already on volk in the united states and then also combining content to gether was the wires from a t.n.t. obviously didn't really quite pay out and if you look what happened to the stock price from h e n t since 2018 when they bought time warner actually the stock didn't really move that much by their competitors like verizon or t. mobile u.s. for example those stocks have gained quite a bit so definitely that was not the best marriage that we had to in the past years between 80 and t. and warner media all right it's a rapidly shifting media landscape court in new york thank you. well there are dangerous jobs and then there are dangers at jobs including

with discovery this morning, growing criticism around the move and at&t's $81 billion deal to buy time warnerat&t needed to dial back media dreams saying it was fun while it lasted, but not for investors. the financial times reads, at&t discovers it has no business in show business. ouch and on "mad money" last night. jim cramer not mincing words. >> it is not a transformation al deal it is the final act in the dumbest move in history. the truth is at&t made a bone-headed decision and now paying for it. in corporate america, no one is paying for it. no one is allowed to admit it in corporate america. >> joining us now is michael white. michael, good morning. everybody seems to be on one side and that is negative. as hard as it may be, is it possible to see the other side is there anybody aside from david of discovery that has gotten it right or gotten a good deal >> good morning, brian nice to be with you. look, i think you have to separate the discussion about what was done in the original merger clearly there were flaws in the strategy and challenges in the exec execution. let's put that as

this is a regulatory issue, i think there's no question that brian would have loved to acquire time warneregulatory environment and the competitive environment, and people's requirements for control, i believe that at&t made the judgment that they were better off at this point in history, working with discovery than with other potential spinoff partners but i'm sure that nbc universal was very much in their minds as an alternative >> i mean, john, you and i have been talking for the last few years during our annual interview, of course, about the slow but steady decline of the old business, so to speak, and the rise of the new, and we have talked about these -- power of these platforms, the direct to consumer i think you've said, obviously netflix and probably disney plus, certainly are going to be or have the scale to compete globally, and i would assume you now feel like this combination of warner discovery is going to be the third such platform >> yes, i think we are not only going to be the third such platform, but i think we'll be very competitive with the other two in terms of being

something with time or warner?on giving 20 years and counting. >> it just keeps getting moved around alex sherman, great reporting there on a potential deal to break within the hour. massive stuff there. at&t will be a phone company again. alex, thank you very much. >>> all right. huge deal. we head to break reminder that may is asian-american and pacific islan islander heritage month. we are highlighting our friends. here is out own eunice yoon. >> growing up, i remember my mom thinking of finances as tuition and school fees. asian culture is a key to success and more in the asian-american community where people are cut off from business relationships when moving to the united states. the intense education and work ethic and success shaped who i am today just over a year ago, i was drowning in credit card debt. sofi helped me pay off twenty-three thousand dollars of credit card debt. they helped me consolidate all of that into one low monthly payment. they make you feel like it's an honor for them to help you out.

hoops on discovery, hoops on time warner. and it was a good day for discovery. it got scale instantly. david and his peers get to run the place, which is a complement to david's management. john malone continues to accrue value. the other thing that happened, liz, is you've begun a redefinition of the streamers. there are now two kinds of streamers. there are those who produce content for streaming and there are those who acquire content for streaming. netflix, amazon, apple, they just acquire content. they stream it. disney, now discovery, they will produce content -- liz: well, leo, let me jump in here. netflix is creating content. they're going to spend $17 billion this year on content. and, you know, they're talking over at discovery that there will be $20 billion in free cash flow. we know they'll want to take on content. david zaslov has already said that news is going to be huge which means cnn is going to be a crown jewel. and this brings us back to some of the people involved in all this. who do you see running this whole thing? >> let me just correct y

in 2016, they spent a large amount on time warner.n 2017, they did not anticipate the trump administration's justice department would intervene and hold up the deal. in 2019, they could not have anticipated activist paul singer's elliott management would step in and set up the device to chair of directv. directv was spun off in 2021 at a fraction of what at&t paid for it. bloomberg began reporting at&t is in negotiations to combine we assets with discovery. a major deal in the works and one that would undo the powerhouse built by his predecessor. back to you. shery: su keenan in new york. you can get a round up of the news on your terminal. it is also available on the mobile app. you can customize settings so you only get the news on the assets you care about. this is bloomberg. ♪ shery: members of the u.n. security council, including the u.s. and china, have called on israel and hamas to immediately halt more than a week of deadly fighting. israeli airstrikes on the gaza strip destroyed three buildings and killed at least 42 people s

jack: so this week's cover story is about the at&t spin-off of time warner merging with discovery.n addition to clearly an admission that that was a really bad deal three years ago, $85 billion plus debt for time warner, what does this tell us about the streaming landscape now? >> there are two centers of gravity in streaming. they are netflix and disney. if you're not one of those, you better be doing something niche and weird like british comedies where your costs aren't too high and for reasons that i can't fathom people willing to pay for it. because if you're trying to be a third or fourth generalist, that's a tough position. customers don't want to pay for that many general streaming services. i think at&t understands that, and that's why it's fleeing hollywood. it raises the question of who is next to consolidate. it creates immediate scarcity value. we saw b -- bofa do a double upgrade or viacom cbs. they were get the healthcare out of it -- it the heck out of your portfolio. now one company with major network and nbc buying another one, but disney has paved the way with it

he sends time warner for $43 billion in a stake in a company that will merge for discovery. and at the same time, he had been encouraging people to not worry about the dividend, told you it was fine. and goes ahead and slashes the dividend in in half. they didn't say it point blank, but he they talked about it being pay to cash load that is a slash of what the shareholders counted on. they called it a resizing as if it were a suit >>> listen, i'm trying to present the story as dispassionately as possible and you know that. you know i'm not making incindiary charges here. we have things bigger than insults. tonight, we are dusting off something i rarely noose 16 years of "mad money" and it's called the wall of shame honestly, i could put at&t'ses entire board of directors on the wall but they still have the chance to claw back some of stephenson's compensation. let's see what they do they talk about the criticism comes from people in trading desks who don't understand what a joke. nobody 's less rt short-term than these poor suffering dividend seeking investors randal stephens

all of a sudden, wow it's like the good news and bad news you get all of the time warner assets that'st is the bad news you get all of the warner media assets >> we'll talk more about it later. >> there is a lot of old media still there and streaming. what percentage is it at this point? craig nailed it. >>> coming up, more on the big media merger with at&t and discovery. we get a look inside the boardroom from two at&t board members with their take on the deal glenn hutchins and geoffrey yang first, the futures nasdaq up 88 we'll be right back. >>> despite the recent slide in big tech, it's one of the sectors our next guest likes like financials. a barbell approach gabriella santos is joining us you and druck with the financials stanley druckenmiller, pretty good company explain how is there not mutually exclusive, tech and financials how does it factor into your thinking >> that's right. good to be with you, joe i think what's really working in the markets to realize that we've been through a third phase here of this new market cycle. the first was all about the virtual world from ma

then to do this transaction, less than three years after completing the deal to acquire warner, time-warner, fighting through a regulatory disaster for them, in the courts, it took them two years to get it done, only to turn around and say we're out, now 71% of the combined company will be owned by at&t shareholders, remember, it's a reverse trust, tax-free to at&t shareholders, it transforms at&t of course, back to a pure wireless company, and it does make warner, discovery, a giant in the media business around the world. >> does that give the at&t shareholder the equivalent of the good dividend, because if you're targeting the dividend payout ratio of 40 or 43%, of anticipated cash flow of 20 billion, well, that's a dividend cut, from 15 billion to 8 billion. >> it's going to be a very different company. now, remember, they're offloading $43 billion in debt, that's kind of net of debt, right? >> and so towers. >> the new company, warner/discovery, basically is much more indebted it levers itself up. over time. and they say very quickly by the time, zaslav says as soon as 2023, they'll be

of course, i remember well the 2018 acquisition of time warner that included us.bly hard for. and through the courts, you know, over $80 billion deal. and now for about 38 billion dollars less, you are off loading is not the right word. but 38 billion dollars less that you are now valuing, that is now valuing the warner media empire. what did you learn from this? was the acquisition a mistake? >> first of all, poppy, i'm going to contest the numbers. i don't think that is actually correct. if it you want to think about it probably closer comparison is $100 billion for the original time warner acquisition and take this to discovery's multiple and the debt we're bringing back in $33 billion, you're in the same neighborhood. but you don't want to just conclude that's the only return. during owning it, there were cash flows generated over that period of time that the company and the shareholder got the benefit of. there are five billions of transactions done on various assets that we monday he tiesed. and more importantly at&t shareholders taking 71% of this new compa

. >> it is a really big deal and it is the second time that the old time warner found a home that wasn't expected but at least this time it is in media hands and will be nurtured and hopefully come back to life. they've been warner brothers -- or the old time warner has amazing assets we shouldn't forget that they just wilted under at&t's management so, we'll see. we'll see what businesses develop and i think it will be a completely different story in a year but there are ramifications for -- i mean the entire sector. from a discovery at&t perspective, there is going to be a turnout, a complete changeover to shareholder base it is 71% of the new company will be owned by at&t shareholders who are used to a 7% dividend. they're not going to get that from a company that has to invest to drive the streaming business so, there will be a change out from that. in addition, historically whenever there is a big acquisition in media, no matter how great it is, your parent company comcast made the most brilliant acquisition with incredible financial terms when they bought nbc universal in the tranc

>> elon musk on "snl." >> 850 or more we had a segment talking about it the top story at&t and time warnerwned by current shareholders of both companies. at&t will receive $43 billion in cash, debt and securities and warner media's retention of debt and in the combined distribution, the deal would create a much more formidable competitor to netflix and disney disney plus. we're going to talk more about this in a few minutes. then at 10:15 eastern, discovery ceo david zaslav and john stankey at&t ceo will join "squawk on the street" for the first cnbc interview a lot of good synergies. it's going to be bigger than nbcuniversal at this point bigger than netflix. you look sat diat discovery, its really all around the world and all of it unscripted in a way. it generates a lot of cash, this gives zaslav, his main is varied at-large and exciting. we mentioned this tongue in cheek, he needed that house, i think in beverly hills he must have known something a year and a half -- he needs a place to have all of the hollywood types come in and what better than -- >> we've been speculating for a whil

time. it is a period of disruption because of streaming, it has changed in the past. change is not flowing down, by any means. you look at at&t and warnerery, that was a fascinating change in the market. clearly, scale matters a lot. at the same time, the access to the business is very distinct from the access to the content business. these businesses, they are connected but the kiss -- but the strategic leverage is actually not that strong and that is why you see discovery as acquiring warner. i'm pretty sure discovery and the people at warner, they are thinking about the same thing because they are combining it to. it is nonlinear, it's exponential. amanda: what does all of this doom? including these acquisitions and the way the industry is changing due to the content creators, in terms of empowering them or disempowering them. is it going to be a good or bad time to be a content creator? >> it is the best time ever for content creators. the demand is higher than ever. we have seen it in front of our own eyes. the number of shows we produce, we also produce with our partners. it's hitting triple digits very quickly. we have 90 project

advertising to advertisers are kicking off this week with fox and nbc starting this monday and this time warnerust in time for that. i don't think it's a coincidence. there's never such a thing of coincidence. stuart: i don't know how saslof kept it so quiet. we have glaxo smith klein, they say their experimental covid vaccine showing strong results. early stage studies say it's efficacy is 95 to 100%. they plan to begin a new treys 3 trial in three weeks. both stocks up. micro strategy on the downside, i think, yes, it is. 5.8%, i guess this is because they hold a lot of bitcoin, susan? susan: they hold a lot of bitcoin. price of bitcoin which hit lowest level in more than 3 months. the business analytics companies hold roughly $5 billion bother and we hold that much and bitcoin prices go down and you go down along with it. square and jack dorsey, continuing to hold $170 million and they say that they will continue to buy despite the fact that they lost around $20 million so far on some of the bitcoin purchases. stuart: yeah, i mean, you see where i'm coming from, susan? you get the theatrics

when the flour plantations had to close for the workers they were able to benefit from a short time warner scheme and those who feel the. talk about. that said the pandemic has had a major impact on local production between workers falling ill repeated lock downs and rising transport costs many small businesses in africa have been struggling to make ends meet those focusing on fair trade have been no exception. welcome back to that story in just a moment for now some of the other global business stories making news. sudan has secured a bridge loan from 3 european countries which will allow it to settle its debt for the african development bank it's sudan's latest step in settling $50000000000.00 of debt pray sudan's recent sweeping economic reforms. general motors has reported higher 1st quarter profits despite a shortage of computer ships that has slowed global auto manufacturing the u.s. government says it hopes taiwanese chip manufacturers will allocate some of their supply to american companies. the rocky road to ratification just got rockier the e.u. has shelved its efforts to win app

they needed to off-load time warner. stuart: can you give me a quick update on home depot? susan: kind of strange. we saw home depot up 2, 3% in the premarket so it has really turned around. despite the 30% gains in same-store-sales. walmart up 4%. online sales jumping by a third here. stuart: thank you, susan. wait a minute. this is for you. bank of america weighing in on bitcoin. this is your territory, susan. what are they saying. >> increasingly yours too which i'm encouraged by, enthused. so in their survey of investors who manage half a trillion dollars, long about long bitcoie most overcrowded trade in the world. i don't think that is surprising to anybody. 3/4 of investors say bitcoin is in a bubble right now. that doesn't necessarily mean bitcoin prices will fall. we've seen peaks and bubbles. bitcoin prices have actually gone up after that, the last time being in january of this year. in the past hour the group that hacked the colonial pipeline, darkside, they just didn't get $75 million, $90 million in bitcoin before shutting down. stuart: i think that is bad pub

this is a great way for them to monetize the time warner assets, probably at a loss, but a way to getashback to continue the rollout. we have seen a lot of mergers over the last several years between content and distribution, and we may see some unwinding of those as we go forward. matt: earlier, we discussed, it was a loss of a $100 million. better to cut your losses then throw good money at bad. where do you see the most m&a activity in 2021, how heavy is this year expected to be? christopher: we see three areas where we could see continued activity, and we are at record activity now. we had our third consecutive quarter of over a billion dollars in transactions. one in health care, the changing laws, so there will be continued consolidation there. filling in the pipelines. we saw that with the astrazeneca transaction, $40 billion announced at the end of last year. that should complete sometime in the third quarter. that was a pipeline deal that they were trying to fill holes in. technology, always cost-cutting going on to stream product lines. big deals we are looking at our nuance

how about the time-warner bidding war. would it be good to be in that one?no. >> you're right. >> i'm right >> carl, just said i'm right. >> thatwas good. >> we have 1% declines basically, only one or two components of the ndx are green. let's get to bob pisani. good morning, bob. >> good morning, guys a little bit of a feel of a flushout, i say that very heavy volume at the open, ten to one declining to advancing stock, an unusual number and i want to look at the sectors, to point out something very important, i know everybody is focused on tech but it is not the worst performer, actually energy and cyclical sector, industrials, and materials, are doing poorly as well this goes to what i call the peak reopening story we have been talking about the last few weeks, this is as good as it get, focus on that for a moment. let me show you tech here. mega cap tech. you know the story here. mega cap tech is down. 10, 12, 14, 15%. apple is 15% off of its recent high microsoft, about that. a little bit more for the chip names and nvidia is probably about 15, 16%. som

in 2016 they bought time warner.inistration had the justice department taking a look that delayed this deal. by 2019, a big activist investor was already putting pressure on the company to get rid of directv. in 21, they spun it off. it is a reversal of the past few years. paul: su keenan there in new york. you can read more about at&t's plans to take on netflix in today's edition of "daybreak." look on your terminals. this is also available mobile on the bloomberg anywhere app. let's get a quick check on the latest business headlines. the delivery arm of e-commerce giant jd.com is seeking to raise as much as 3.4 billion dollars in its hong kong initial public offering. they will offer 609 .2 million shares. jd logistics will be the second largest ipo in the city this year. lg is investing 35 million dollars -- billion dollars to strengthen its supply chains. they produce ultrathin copper foil. they say the parts are key to manufacturing ev batteries and demand is expected to grow. the chinese company posted a fourfo

. >> at&t got in big into the entertainment business, directv and time warner and now getting -- >> now unwinding that. although, at&t shareholders will remain very much invested in this new media company. so in effect what we're seeing is an unwinding of a deal five years ago. at&t focused on wireless and broa broadband. but you're going to try to be invested in the future of streaming. it's remarkable to see how the world is changing because of consumer preferences. stream whatever show you want wherever you want. discovery and warner coming together. >> cnn is part of this deal. >> cnn is part of the deal. we don't know anything more than that. >> brian stelter, thank you for the news. >>> new detail this morning in the divorce saga between bill and melinda gates. the outer at microsoft came after there was an investigation of a romantic relationship he had with an employee 20 years ago. joining me now is emily glazier. she's part of the reporting team that broke this story. >> reporter: late in 2019 a microsoft employee and engineer sent a letter that allegedly reached the board. th

time warner. turned in the mia in one week time. the big loser, ran dal stephenson. i can't wrap, the ran dal stephenson put together the deal that has unwound. one more loser is potential, john stock john stanky. he was behind with randall stephenson, which they fought in court against trump and directv, another big loser. this is a firm, at&t, company, known for bad deals as you can tell. back to you, jackie. jackie: so interesting, charlie, to see how things can change literally in a new york minute for people as you're sort of laying out the playerers and how this will work. thank you so much for bringing that to us. we'll talk to you soon. >>> meantime bitcoin prices are rebounding from a three-month low after elon musk clarify as tweet over tesla's bitcoin holdings. we're back with our panel, ann berry, hal lambert. ann, start with you. musk was behind bitcoin and walking it back and is wondering why everyone is confused? >> yeah he does definitely move bitcoin prices with one character at a

telecom giant at&t stormed into the media business, acquiring time warner inc.. but looking to invest more in 5g and facing 130 billion euros in debt, at&t is now shifting its focus away from entertainment. it is looking to spin off media and sports operations including cnn, hbo, tnt, and warner bros. studios to combine them with discovery think, which has channels in 2 -- discovery, which has channels in 220 countries. the combination of two of the largest media operations in the u.s. effectively creates a new standalone company with the goal of creating one of the largest global streaming players. in a joint statement, the two companies said the deal will see at&t receive 43 billion dollars. shareholders will receive stock representing 71% of the new company while dcovery stocolders will own 29%. the chief executive of the new company was upbeat about the news. >> it is super exciting to combine such historic brands, world-class journalism, and iconic franchises under one roof and unlock so much value and opportunity. >> the deal positions the company to become

always good to hear from you but for now what time is it 27 minutes past 10 of the morning moscow time warner ever time it is with you wherever you're watching hope you have a great wednesday. right now there are $2000000000.00 people who are overweight or obese it's also simple to self the cs and sugary and salty and addictive it's not at the individual level option it's not individual willpower and if we go on believing the never change this obesity epidemic that industry has been influencing very deeply the medical and scientific establishment. so what's driving the obesity epidemic it's corporate profit. i. this is the one business show you can't afford to mess i'm rachel robinson washington coming up china and russia are the hot topics as the group of 7 meets in london so how will the tough words impact will those tensions moving forward plot foiled try to rally and made new hopes for economic recovery in the u.s. and year out but will it be enough to offset the crisis in india and brazil that our poll faces off against fortnight maker attic games in court and a battle over antitrust vio

and those close to time warner are saying this is a surprising turnaround.w york. let's do a quick check on where the markets are. markets have been swinging between gains and losses. we have the resurgence in violence -- in virus cases. the index lower by 1%. indonesia to start covid-19 private vaccinations on may 18. keep it here. this is bloomberg. ♪ is bloomberg. ♪ ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. (announcer) back pain hurts. you can spend thousands and still not get relief. now there's aerotrainer by golo. you can stretch and strengthen your core, relieve back pain, and tone your entire body. (man) and you're stretching you

not all of them, there are a few left of time warner.l it. actually people say discovery bought it. no, at&t basically bought discovery. at&t shareholders. >> right. >> but discovery management, the scrappy mr. zaslav gets to operate it malone and the new houses get to control it, and i think it's now -- it's certainly in better hands. how could it have ever been in worse hands? it's in better hands now zaslav is the kind of creative executive. he's scrappy he built discovery from relatively nothing to something. >> right >> he's exactly the right person to -- you know, to try and develop it >> you once said that nobody would really be able to ever compete against netflix. >> yeah. >> given its success >> yeah. that's true. >> still true? >> yeah. >> so warner media, discovery, this doesn't change that >> i don't think it changes the -- look, netflix won this several years ago. they're the only ones who have the scale and the momentum to keep making these somewhat lunatic investments in programming, and it's not that disney -- look, iger

keep in mind at&t spent more than $85 billion to buy time warner nearly three years ago. >>> and the ticking to toishe last daral tax returns. l yo paprk. the same gfo manyas e al ddline was last moh, but the irs pushed it back because of the pandemic. so far the average refund this year is around $3,000. anne-marie? >> taxes, well, on that upbeat note -- thank you very much, diane king hall in new york. >> you got it. all right. >> happy monday. >> happy monday. good luck, everybody. all right. >>> up next, dangerous joyride. how an airport's x-ray machine abruptly ended a 9-year-old boy's trip on a baggage conveyor belt. conveyor belt. i brought in ensure max protein, with thirty grams of protein. those who tried me felt more energy in just two weeks! ( sighs wearily ) here, i'll take that! ( excited yell ) woo-hoo! ensure max protein. with thirty grams of protein, one-gram of sugar, and nutrients to support immune health! ( abbot sonic ) feel the cool rush of claritin cool mint chewables. powerful 24-hour, non-drowsy, allergy relief and nutrients to support immune health! plus an

. >> the great escape for time-warner, i mean for at&t, a remarkable thing, you know, it's the thing you think about it, it's the power of moan pole mo knolly, people say discovery bought it, no, at&t basically bought discovery, at&t shareholders but discovery management, the scrappy mr. zaslav gets to operate it. >> that stock actually has had a rough week, as has our parent company comcast, as has charter. both of those bound in part because they do believe there was going to be more flexible, more competitive at&t and the wireless/connect tive industry and behind the notes this morning, ubs talking about, listen, none of them seem to believe they will necessarily get to the 20 billion free cash flow target at at&t. but the analysts are coming out positive today on the stock, don't seem to care that much for its part do we have that ubs? they talk about, they're just going to be more competitive in the wireless industry. that's what they come back to. they say while cable continues to grow as a force in wireless and competition from wireless and t-mobile will ebb and flow, we belie

golden globes and the hollywood foreign press association so—called reform movements and netflix and time warnerf when, not if nbc was going to pull the plug for 2022. it's almost like the world bank saying we need meaningful reforms, we need better governments. what kind of reforms talking about? a lot of people put emphasis on the fact that it was just before this year. that the globes has not one single black member in there now 86 members because they lost a former president as a member recently because it turned out he was sending out racially offensive e—mails. of their 86 members, 75 of them last week voted for a rather ambitious but not that great on the details reform plan that the board has put forward. among various things they said they wanted to raise their membership by 50% within the next 18 months, which would have passed it beyond the point of the 20 22 globes, maybe even 2023. and they wanted to bring a real governance and transparency and after being around since the mid—40s, and actual code of ethics. those things may still happen to come up but as nbc and others pointed out

acquired time warner and $85000000000.00 deal the latest deal would create a new business separate from e t n t which would be valued at around $150000000000.00 including debt shareholders for 80 and she would receive 71 percent of the company's stock and discovery shareholders would receive 29 percent while the move is being seen by some as a way for 18 t. to get out of a questionable acquisition it also creates the 2nd largest media company in the industry ahead of netflix and n.b.c. universal and right behind disney meanwhile inflation concerns continue to weigh on u.s. markets so joining me now to leading the shell snyder partner and director of trading research and education for the market gauge group now michelle let's start with this new merger i know we've talked a lot about how much tech stocks have struggled in recent months so how is the news that agency is planning a major competition for netflix and disney having an impact on the market right now . well when netflix reported earnings that's really when they started to run into trouble because the numbers were already starti

he acquired time warner and an $85000000000.00 deal the latest deal would create a new business separate from a t.n.t. which would be valued out around $150000000000.00 including debt shareholders for a fee and he would receive 71 percent of the company's stock and discovery shareholders would receive 29 percent while the move is being seen by some as a way for 18 t. to get out of a questionable acquisition and also creates the 2nd largest media company in the industry ahead of netflix and n.b.c. universal and right behind disney meanwhile inflation concerns continue to wait on u.s. markets so joining me now to discuss the latest issue of shell sign are partner and director of trading research and education for the market gauge group now michelle let's start with this new merger i know we've talked a lot about how much tech stocks have struggled in recent months so how is the news that 18 c. is planning some major competition for netflix and disney having an impact on the market right now. well when netflix reported earnings that's really when they started to run into trouble because the

he acquired time warner and an $85000000000.00 deal the latest deal would create a new business separate from a t.n.t. which would be valued out around $150000000000.00 including debt shareholders for a fee and he would receive 71 percent of the company's stock and discovery shareholders would receive 29 percent while the move is being seen by some as a way for 18 t. to get out of a questionable acquisition it also creates the 2nd largest media company in the industry ahead of netflix and n.b.c. universal and right behind disney meanwhile inflation concerns continue to weigh on u.s. markets so joining me now to discuss the latest issue of shell snyder partner and director of trading research and education for the market gauge group now michelle let's start with this new merger i know we've talked a lot about how much tech stocks have struggled in recent months so how is the news that a.t.m. t. is planning some major competition for netflix and disney having an impact on the market right now. well when netflix reported earnings that's really when they started to run into trouble because t

he acquired time warner and an $85000000000.00 deal the latest deal would create a new business separate from e t n t which would be valued at around $150000000000.00 including debt shareholders for 80 and she would receive 71 percent of the company's stock and discovery shareholders would receive 29 percent while the move is being seen by some as a way for 18 t. to get out of a questionable acquisition it also creates the 2nd largest media company in the industry ahead of netflix and n.b.c. universal and right behind disney meanwhile inflation concerns continue to weigh on u.s. markets so joining me now to believe. her partner and director of trading research and education for the market gauge group now michelle let's start with this new merger i know we've talked a lot about how much tech stocks have struggled in recent months so how is the news that 80 and she is planning a major competition for netflix and disney having an impact on the market right now . well when netflix reported earnings that's really when they started to run into trouble because the numbers were already starting

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he's also lobbied for cnn's parent company alo time warner a venture capitalist, of course, until hee to the white house. dark money -- claims all over it and involved with groups like ther center for american progress to name a big one klain is a rank partisan. according to cnn, republicans were frustrated with klain during oval office meeting in february. where he was calling all of the shots not biden and shaking his head no every tim a republican senator even presented one idea. next up, steve pulling strings in biden's life for a long, long time. he also works in both the obama and the clinton administration very swampy. according to "new york times" sources he has overseen lots of biden's financial and personal decisions. in addition to his political ones, he was the one who made his 7 figure book deal happen. and his book tour that brought him over 15 million. he's biden's money man. also a well known lobbyist, of course -- [laughter] his own lobbying firm ranking in millions of dollars his clients were some of the top corporate companies in america at&t pfizer, general motors

and it involves going back in history, the originally deal for at&t to buy time warner in october 2016er. at the time, yuccas said it was too late iger hung up and called rupert murdoch. if you think of all of the mutations, and undoing it and to sell it in part to discovery and everything else that happened remember, we reported on our air when rupert murdoch tried to buy time warner as well. but a little bit of -- maybe -- we'll never know what could have happened but there was a moment clearly where disney could have actually bought time warner a little interesting fact along the history time line of media >> everybody looked at everyone at some point. they're all looking at each other. who knows, anything that could have been different partners, they all got to worry about how similar things are, the overlap and everything else. but did anyone think it was going to be discovery/warnermedia? i was trying to figure out a name >> they still are. it's not like this is done they're all still looking for each other >> what's the name got a name for zaslav? >> i think there permutations o

you have disney, google/youtube, maybe apple, discovery with time warner, and amazon and netflix. that's five large players. it clearly indicates the scope of the spending required to be competitive in the segment. you got to be willing to cut checks of at least $10 billion a year to be competitive, and netflix is doing that. they are spending $17 billion a year. most household are going to sign up for three or more services. that is routine. i'm almost certain netflix will be one of those three, so netflix has a hedge though competitive risk is rising. emily: is amazon going to be one of those three? >> i don't know that they will. i know amazon's prime program is going to be most -- it is something that almost 80% of u.s. amazon customers are prime customers, so that will be ubiquitous. my guess is what we look at the survey work, what we see is the more likely you are to be a prime member, the more likely you are to be a netflix member. like those two services are complementary. i think that is the bigger trend. there may be some competitiveness, but the broader thing is consum

challenging the at&t acquisition of time warner at the time.merger the justice department had not challenged before. they did. it got approved eventually, but there was talk of what drove that. but to be fair, this kind of thing did not begin with the trump administration. the obama administration sought ph phone records of journalists, ap reporters and fox reporter. their explanation was this was about prosecuting the leaker, not the reporter. and i wonder, is that a fair legal argument and how those two things -- you have freedom of the press but a national security interest here. how those two things balance out in cases like this. >> so, listen, i know reporters hate this, but there has to be an ability on the part of law enforcement to enforce the laws about classified information when it's a true national security issue. and it's really an extraordinary case. like it's supposed to be in the regulations. the problem is when it's not in good faith, when it's not that. you have to find a way to determine which of these it is. but the truth i

that was the case when at&t announced the acquisition of time warner. collection of all of those content assets into one place is going to raise eyebrows. particularly, assure equal access to everybody in the market >> i want to come back to the comment around content we have the notion of content is king streaming services heavily investing in content what will it look like after five years how many major players will survive? >> that is a great question. too many companies chasing few dollars. the holy grail is content a aggregation. netflix is part of the household set up then you have disney plus and then amazon prime and a long tail of other services that's why we see moves by the content giants getting together. this is the start of consolidation. otherwise we will have casualties >> paolo, the top three are so far ahead. netflix and disney plus which surged in the last year. amazon prime so far ahead of the others it will be extremely difficult to make a dent in the market in this case, you have hbo max what will they get merging with discovery?